Marketing - Key Concepts and Strategies

Definition of Marketing

• Marketing: Identifying consumer needs, developing a product to satisfy those needs, advertising, and promoting the product to ensure sales.

Marketing Strategy

• Marketing Strategy: Plan to market a product, including:
  • Pricing strategy
  • Placement strategy
  • Promotional strategy
• Marketing Mix (4 Ps):
  • Product: Quality and function, differentiation from competitors.
  • Price: Impact on sales and profit, setting appropriate pricing.
  • Place: Accessibility to target market.
  • Promotion: Making the product known to potential customers.

Product Life Cycle

• Stages:
  • Development
  • Introduction
  • Growth
  • Maturity
  • Saturation
  • Decline
• Examples: BMW (long life cycle), Pokemon Go (short life cycle).

Pricing Strategies

• Premium Pricing: High price for high-value perception.
• Cost Plus: Add markup to cost.
• Penetration Pricing: Low initial price to gain market share, increase over time.
• Price Skimming: High initial price, lowers over time.
• Price Discrimination: Varying price based on customer segment.
• Loss Leader: Selling at a loss to attract customers, hoping they buy other products.

Channels of Distribution

• Routes for goods from manufacturer to consumer.
  • Direct: Manufacturer to consumer.
  • Indirect: Manufacturer to wholesaler to retailer to consumer.
• Importance of understanding different distribution channels for various industries.

Market Segmentation

• Market Segments: Groups with similar buying habits.
  • Criteria: Age, gender, income, ethnicity.
• Target Market: Selected segments for focused marketing efforts.
• Niche Market: Small, specific segments within a broader market.

Key Takeaways

• Focus on understanding the marketing mix (4 Ps).
• Be familiar with different life cycles and pricing strategies.
• Recognize the importance of distribution channels.
• Understand market segmentation and targeting strategies.

These notes cover the essential concepts required for understanding the marketing chapter in preparation for exams. Prioritize the marketing mix concepts as they are frequently tested.